SEC Document

RPM Reports Fiscal 2018 Second-Quarter Results

January 4, 2018

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economy is improving and currency translation is favorable. Additionally, we are driving improved operating
leverage throughout the entire industrial segment by continually pursuing additional cost savings and efficiencies. With this global backdrop, industrial segment sales growth for the balance of the fiscal year should be in the upper-single-digit
range, stated Sullivan.

In the consumer segment, we expect sales growth in the low-to-mid-single-digit range during the back half of the fiscal year. Most of the growth will be organic, as last years acquisitions annualize their purchase
date during the third quarter. We plan to invest in our great brands by stepping up advertising and promotional activity in the spring sell-in season and therefore, expect back-half earnings results to be
fairly flat to last year in this segment, he stated.

In the specialty segment, we expect sales growth in the
low-single-digit range during the back half of the fiscal year. This, too, will be mostly organic as last years acquisitions also annualize their purchase date during the third quarter. We will continue
to face headwinds from the patent expiration through the first quarter of fiscal 2019, he stated.

In aggregate, our operations have performed
in line with our expectations when we issued our fiscal 2018 guidance back in July, and we would expect this trend to generally continue in the back half of this fiscal year. In regard to our taxes, our 19.6% effective tax rate for the first six
months has been better than expected. We approved and completed certain foreign legal entity restructurings that resulted in the recognition of favorable discrete tax benefits that reduces our annual effective tax rate from the rate utilized for our
current EPS guidance, Sullivan stated.

With the enactment of new federal tax legislation two weeks ago, there is a corporate rate reduction
from 35% to 21%. The corporate rate reduction is effective for us as of January 1, 2018 and accordingly will reduce our current fiscal year federal statutory rate to a blended rate of approximately 29.2%. This is expected to further reduce
RPMs effective tax rate this year by two to three percentage points, adding approximately $0.10 per diluted share to our fiscal 2018 outlook. Additionally, in the third quarter we expect to record a discrete tax adjustment for the impact of
the rate change on our deferred tax assets and liabilities, as well as the impact of the transition tax on deferred foreign earnings, stated Sullivan. Excluding this one-time discrete tax
adjustment resulting from the new federal tax legislation, we are increasing our full-year fiscal 2018 EPS guidance to a range of $3.00 to $3.10 per share.

Webcast and Conference Call Information

Management will
host a conference call to discuss these results beginning at 10:00 a.m. EST today. The call can be accessed by dialing 888-771-4371 or 847-585-4405 for international callers. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. The call, which will
last approximately one hour, will be open to the public, but only financial analysts will be permitted to ask questions. The media and all other participants will be in a listen-only mode.

For those unable to listen to the live call, a replay will be available from approximately 12:30 p.m. EST on January 4, 2018 until 11:59 p.m. EST on
January 11, 2018. The replay can be accessed by dialing 888-843-7419 or 630-652-3042
for international callers. The access code is 46126264. The call also will be available both live and for replay, and as a written transcript, via the RPM web site at www.RPMinc.com.

About RPM

RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands are Rust-Oleum, DAP and Zinsser.